Investors in zero-coupon bonds must generally pay taxes each year on the prorated share of interest before interest is actually paid at maturity

Check with the SEC’s website for a prospectus indicating the risks associated with the bonds à describes how the company will pay you back, the security, etc. à check EDGAR à also check periodic reports (10-k’s give you a snapshot of a company’s condition)

If you want to learn more about corporate bonds, check out the following websites: